Galen Capital Corp. Completes Closing to Acquire Prospect Financial Advisors, LLC

McLean, VA – July 16, 2007– Galen Capital Corp. (GCC), a merchant banking and private equity firm dedicated to small capital, middle-market companies, today announced that GCC Securities Corp., a wholly-owned subsidiary of the Company, has completed the acquisition of Prospect Financial Advisors, LLC. Prospect is a 50 state NASD – registered broker dealer located in Los Angeles, Calif. On April 16, 2007, Galen entered into an agreement to acquire Prospect Financial Advisors and on June 30, 2007 satisfied regulatory requirements for the transaction.

“The acquisition of Prospect Financial Advisors brings significant growth and opportunities for Galen,” said William P. Danielczyk, Chairman of Galen Capital Corp. “A NASD broker dealer will allow Galen to gain greater access to bigger and better clients. This relationship is extremely important as we look to broaden our company and the caliber of the companies that we work with. I am also very pleased that Scott Wendelin will be leading the West Coast efforts as Senior Managing Director of Galen and Chief Executive Officer of Prospect Financial Advisors.”

Prospect Financial Advisors will be headquartered out of Galen’s Century City office in Los Angeles. Scott E. Wendelin, Founder and Chief Executive Officer of Prospect Financial Advisors, will be Senior Managing Director and Rick D. Gonzalez will continue as the Chief Financial Officer. Serving the needs of small to medium companies requires unique capital market, industry and regulatory expertise which the senior members of Prospect Financial Advisors have demonstrated over decades of involvement with other leading investment banks.

“I am excited about the opportunity to be a part of the Galen Organization,” said Scott E. Wendelin. “Prospect Financial Advisors has always been committed to providing independent financial advice and capital access to companies to allow them to achieve significant corporate initiatives. By adding the capabilities of Prospect Financial Advisors, a national broker dealer and NASD member, Galen is expanding its commitment to becoming the premier financial advisor, capital provider and strategic partner to leading middle-market companies in a variety of growth industries.”

Galen, through its affiliation with Prospect, serves healthcare, financial service, energy, homeland security, media and technology companies. Galen combines superior investment banking capabilities with a unique ability to originate and distribute securities through a national network of affiliated broker dealers. Where access to capital is critical to achieve client objectives, Galen, partnered with Prospect, provides ready access to individual and institutional investors.

About Galen Capital Corporation (GCC)

Galen Capital Corp. (www.galencc.com) is a merchant banking and private equity firm dedicated and focused on working with small capital, middle-market companies. GCC offers a range of transaction execution and advisory services in the areas of mergers and acquisitions, leveraged buyouts, mezzanine, equity and debt financing, and private & public placements. Headquartered in Washington, DC, the firm also has offices in Los Angeles Calif., San Diego, Calif., Nashville, Tenn. and opening soon in London, U.K.

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Contact:
Anna Drinkard
Director of Corporate Communications
703-893-0021 ext. 105
adrinkard@galencc.com